Neonode Inc. (Nasdaq:NEON), the optical touch technology company,
today reported financial results for the fourth quarter and year
ended December 31, 2014.
Recent Highlights:
- Signed agreement with Global Tier One PC OEM for zForce PLUSTM
touch enabled All In One PCs and Monitors
- Signed agreement with Autoliv for zForce DRIVETM Active Sensor
Steering Wheel applications
- Volvo and an additional 2 automotive OEMs are in production
using zForce CORETM touch technology for the in-car infotainment
system
- At the Geneva International Motor Show, Koenigsegg and another
global automotive OEM launched new models that include zForce CORE
touch for the in-car infotainment system
- Amazon began shipping e-readers using zForce CORE touch
solution in Q4 2014, but with revenue recognition for Neonode in Q1
2015
- HP printers with zForce CORE touch solutions continues to ramp
with 20+ models currently in the worldwide market
- As of December 31, 2014 we have 59 patents issued globally and
117 pending
"I am excited to announce that we recently signed an agreement
with one of the largest PC OEMs where we, along with our partners,
will deliver touch and proximity modules for their PC products,"
said Neonode CEO Thomas Eriksson.
"We continue to work with the leading printer OEMs developing
multiple products for 2015 and beyond. These printer OEMs represent
the majority of volumes for the printer market," continued Mr.
Eriksson.
"After 5 years of intense integration and development work we
now have multiple automotive OEMs in production and more are coming
to production during 2015 to begin shipping worldwide. Our zForce
technology has been integrated into cars ranging from extremely
high end to economy, which really show the versatility of our
solutions. I am also happy to notice that the reviews on the Volvo
XC90 have been very positive," concluded Mr. Eriksson.
Financial Results for the Fourth Quarter of
2014
Fourth quarter 2014 consolidated net revenues increased 54% to
$1.7 million compared to $1.1 million for the third quarter of
2014. On a year-over-year basis, fourth quarter 2014 revenues
increased by 72%, primarily due to increased license fees and NRE
fees earned from completed development projects.
Operating expenses increased 13% to $4.3 million for the fourth
quarter of 2014 compared to $3.8 million for the same quarter in
2013 due to several factors including legal expense related to
patent filings and non-recurring events, an increase in headcount,
primarily in our sales and engineering departments due to increased
activities in the automotive, printer and PC segments. Consolidated
fourth quarter net loss was $3.1 million or $0.08 loss per share,
compared with a net loss of $3.0 million or $0.08 loss per share
for the comparable quarter in 2013.
Financial Results for the Year Ended December 31,
2014
Net revenues for the year ended December 31, 2014 was $4.7
million, compared to $3.7 million for the year ended December 31,
2013. Our net revenues for the year ended December 31, 2014
included $3.1 million from license fees due to product shipments
from 16 customers and $1.6 million in NRE services from 22
customers. Our net revenues for the year ended December 31, 2013
included $2.9 million from license fees due to product shipments
from 12 customers and $800,000 in NRE services from 22
customers.
The increase in overall net revenues in the year ended December
31, 2014 compared to the year ended December 31, 2013 is primarily
due to an increase in license fees and NRE fees from customers. NRE
fee revenue doubled in 2014 compared to 2013.
Gross margin was $3.2 million for the year ended December 31,
2014 compared to $2.1 million for the year ended December 31, 2013.
Our gross margin increased primarily due to improved profitability
of NRE services combined with an increase of our license fees
compared to 2013. The gross margin related to our license fees is
100%. As license fees as a percentage of our total revenue
increase, our gross margin will increase.
Operating expenses increased 16% to $17.4 million for the year
ended December 31, 2014 compared to $15.0 million for the year
ended December 31, 2013. The increase in operating expenses for
2014 compared to 2013 is primarily due to the same factors that
were previously explained for the quarter.
As a result of the factors discussed above, we recorded a net
loss of $14.2 million, or $0.36 per share, for the year ended
December 31, 2014 compared to a net loss of $13.1 million, or $0.37
per share for the year ended December 31, 2013.
Cash totaled $6.1 million at December 31, 2014 compared to $8.8
million at December 31, 2013. Common shares on a fully diluted
basis totaled 45.7 million on December 31, 2014 compared to 40.4
million at December 31, 2013.
Conference Call Information
The Company will host a conference call Thursday, March 12, 2015
at 10AM Eastern Daylight Time (EDT) featuring remarks and Q&A
hosted by Thomas Eriksson, CEO, Lars Lindqvist, CFO and David
Brunton, Head of Investor Relations.
The dial-in number for the conference call is toll-free: (877)
539-0733 (U.S. domestic) or +1 (678) 607-2005 (international). To
access the call all participants must use the following Conference
ID: #92050468. Please make sure to call at least five minutes
before the scheduled start time. To register for the call, and
listen online, please click:
http://event.on24.com/r.htm?e=947672&s=1&k=5CABFEADAC6855B0A5ED81ABD80B3CAB.
For interested individuals unable to join the live event, a
digital recording for replay will be available for 30 days after
the call's completion - 3/12/2015 (13:00PM EDT) to 4/12/2015
(23:59PM EDT). To access the recording, please use one of these
Dial-In Numbers (800) 585-8367 or (404) 537-3406, and the
Conference ID # 92050468.
About Neonode
Neonode Inc. (Nasdaq:NEON) develops and licenses the next
generation of MultiSensing® touch technologies, allowing companies
to differentiate themselves by making high performing touch and
proximity sensing solutions at a competitive cost. Neonode is at
the forefront of providing unparalleled user experiences that offer
significant advantages for OEM's. This includes state-of-the-art
technology features such as low latency pen or brush sensing with
high speed scanning, proximity-, pressure-, and depth sensing
capabilities and object-size measuring on any surface.
Neonode's patented MultiSensing touch technology is developed
for a wide range of devices like wearable's, notebooks, all in one
computers, monitors, mobile phones, tablets and e-readers, toys and
gaming consoles, printers and office equipment and automotive
systems. NEONODE, the NEONODE Logo, ZFORCE and MULTISENSING are
trademarks of Neonode Inc. registered in the United States and
other countries. ZFORCE CORE, ZFORCE PLUS and ZFORCE DRIVE are
trademarks of Neonode Inc. All other trademarks are the property of
their respective owners. For more information please visit
www.neonode.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These include, but are not limited to, statements relating to
expectations, future performance or future events, and product
cost, performance, and functionality matters. These statements are
based on current assumptions, expectations and information
available to Neonode management and involve a number of known and
unknown risks, uncertainties and other factors that may cause
Neonode's actual results, levels of activity, performance or
achievements to be materially different from any expressed or
implied by these forward-looking statements.
These risks, uncertainties, and factors are discussed under
"Risk Factors" and elsewhere in Neonode's public filings with the
U.S. Securities and Exchange Commission from time to time,
including Neonode's annual report on Form 10-K, quarterly reports
on Form 10-Q, and current reports on Form 8-K. You are advised to
carefully consider these various risks, uncertainties and other
factors. Although Neonode management believes that the
forward-looking statements contained in this press release are
reasonable, it can give no assurance that its expectations will be
fulfilled. Forward-looking statements are made as of today's date,
and Neonode undertakes no duty to update or revise them.
© 2015, Neonode Inc. All rights reserved. Neonode is a
registered trademark of Neonode Inc.
NEONODE
INC. |
CONSOLIDATED BALANCE
SHEETS |
(In thousands, except share and
per share amounts) |
|
|
|
|
|
|
|
December |
December |
|
31, 2014 |
31, 2013 |
|
|
|
ASSETS |
|
|
Current assets: |
|
|
Cash |
$ 6,129 |
$ 8,815 |
Accounts receivable, net |
1,106 |
969 |
Projects in process |
200 |
736 |
Prepaid expenses and other
current assets |
513 |
616 |
Total current
assets |
7,948 |
11,136 |
Property and equipment,
net |
654 |
335 |
|
|
|
Total assets |
$ 8,602 |
$ 11,471 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 566 |
$ 479 |
Accrued expenses |
935 |
978 |
Deferred revenues |
3,403 |
3,666 |
Current portion of capital
lease obligations |
61 |
-- |
|
|
|
Total current liabilities |
4,965 |
5,123 |
Capital lease obligations, net
of current portion |
367 |
-- |
Total liabilities |
5,332 |
5,123 |
|
|
|
Commitments and contingencies |
|
|
|
|
|
Stockholders' equity: |
|
|
Series B Preferred stock,
54,425 shares authorized with par |
|
|
value of $0.001; 83 shares
issued and outstanding at |
|
|
December 31, 2014 and 2013. (In
the event of dissolution, |
|
|
each
share of Series B Preferred stock has a liquidation preference
equal |
|
to par value of $0.001
over the shares of common stock) |
-- |
-- |
Common stock, 70,000,000 shares
authorized at |
|
|
December 31, 2014 and 2013 with
par value of |
|
|
$0.001; 40,455,352 and
37,933,799 shares issued and |
|
|
outstanding at December 31,
2014 and 2013, respectively |
40 |
38 |
Additional paid-in capital |
169,010 |
157,994 |
Accumulated other comprehensive
income |
149 |
11 |
Accumulated deficit |
(165,929) |
(151,695) |
Total stockholders' equity |
3,270 |
6,348 |
Total liabilities and
stockholders' equity |
$ 8,602 |
$ 11,471 |
|
NEONODE
INC. |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(In thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
2014 |
2013 |
2012 |
Net revenues |
$ 4,740 |
$ 3,717 |
$ 7,137 |
Cost of revenues |
1,509 |
1,642 |
1,465 |
|
|
|
|
Gross margin |
3,231 |
2,075 |
5,672 |
|
|
|
|
Operating expenses: |
|
|
|
Research and development |
7,373 |
7,235 |
5,741 |
Sales and marketing |
3,250 |
2,732 |
4,372 |
General and administrative |
6,799 |
5,079 |
4,721 |
|
|
|
|
Total operating expenses |
17,422 |
15,046 |
14,834 |
|
|
|
|
Operating loss |
(14,191) |
(12,971) |
(9,162) |
|
|
|
|
Other expense: |
|
|
|
Other expense, net |
(30) |
-- |
-- |
Total other expense |
(30) |
-- |
-- |
|
|
|
|
Loss before provision for income taxes |
(14,221) |
(12,971) |
(9,162) |
Provision for income taxes |
13 |
109 |
125 |
|
|
|
|
Net loss |
$ (14,234) |
$ (13,080) |
$ (9,287) |
Loss per common share: |
|
|
|
Basic and diluted loss per share |
$ (0.36) |
$ (0.37) |
$ (0.28) |
Basic and diluted – weighted average
number |
|
|
|
of common shares outstanding |
39,532 |
35,266 |
33,003 |
|
NEONODE
INC. |
CONSOLIDATED STATEMENTS
OF COMPREHENSIVE LOSS |
(In thousands) |
|
|
|
|
|
Years ended December 31, |
|
2014 |
2013 |
2012 |
|
|
|
|
Net loss |
$ (14,234) |
$ (13,080) |
$ (9,287) |
Other comprehensive income (loss): |
|
|
|
Foreign currency translation gain (loss) |
138 |
6 |
(8) |
|
|
|
|
Total comprehensive loss |
$ (14,096) |
$ (13,074) |
$ (9,295) |
|
NEONODE
INC. |
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
(In thousands) |
|
|
|
|
|
Years Ended December
31, |
|
2014 |
2013 |
2012 |
|
|
|
|
Cash flows from operating activities: |
|
|
|
Net loss |
$ (14,234) |
$ (13,080) |
$ (9,287) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
Stock-based compensation |
1,729 |
2,656 |
3,499 |
Bad debt expense |
167 |
-- |
-- |
Depreciation and
amortization |
202 |
144 |
97 |
Loss on disposal of assets |
16 |
8 |
-- |
Changes in operating assets and
liabilities: |
|
|
|
Accounts receivable |
(304) |
1,155 |
1,253 |
Projects in process |
530 |
(736) |
-- |
Prepaid expenses and other
current assets |
(60) |
95 |
(296) |
Accounts payable and accrued
expenses |
363 |
19 |
239 |
Deposits |
-- |
-- |
(68) |
Deferred revenues |
(233) |
938 |
819 |
|
|
|
|
Net cash used in operating
activities |
(11,824) |
(8,801) |
(3,744) |
|
|
|
|
Cash flows used in investing activities: |
|
|
|
Purchase of property and
equipment |
(115) |
(155) |
(310) |
Proceeds from sale of property
and equipment |
7 |
-- |
-- |
|
|
|
|
Net cash used in investing
activities |
(108) |
(155) |
(310) |
|
|
|
|
Cash flow from financing activities: |
|
|
|
Proceeds from exercise of stock
options |
-- |
1,060 |
-- |
Proceeds from exercise of
warrants |
36 |
714 |
223 |
Principal payments on capital
lease obligation |
(34) |
-- |
-- |
Proceeds from issuance of
common stock, net of offering costs |
9,253 |
6,892 |
-- |
|
|
|
|
Net cash provided by financing
activities |
9,255 |
8,666 |
223 |
Effect of exchange rates on cash |
(9) |
8 |
(12) |
|
|
|
|
Net decrease in cash |
(2,686) |
(282) |
(3,843) |
Cash at beginning of year |
8,815 |
9,097 |
12,940 |
|
|
|
|
Cash at end of year |
$6,129 |
$8,815 |
$9,097 |
|
|
|
|
Supplemental disclosure of cash flow
information: |
|
|
|
Cash paid for interest |
$14 |
$ -- |
$ -- |
Cash paid for income taxes |
$5 |
$109 |
$125 |
|
|
|
|
Supplemental disclosure of non-cash investing
and financing activities: |
|
|
|
|
|
|
|
Purchase of equipment with
capital lease obligation |
$530 |
$ -- |
$ -- |
CONTACT: For more information, please contact:
Investor Relations:
David Brunton
Email: david.brunton@neonode.com
CFO
Lars Lindqvist
E-mail: lars.lindqvist@neonode.com
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